Are there any clauses in a insurance contract that allows an insurer to not pay claims if too many people die from Covid virus?
Is there a risk that insurance customers will be left out to dry?
The insurance company could go bankrupt.
But a reputable insurance company will have their own insurance, called reinsurance, to protect their policy-holders and their investors from this possibility.
-
-
4@HartCO, you can't extract blood from a stone. But if reinsurers are going bankrupt, then very likely the loss is on a scale where the government is likely to step in. – The Photon Apr 1 at 0:21
-
-
@glglgl, the government doesn't go bankrupt, it just prints more money, causing inflation, and reducing the real value of its debts. – The Photon Apr 2 at 10:04
-
@glglgl, at least if it's a government that controls its own currency and has debts denominated in that currency. – The Photon Apr 2 at 10:06
